Auto Glass Shop Receivable Financing by 1st
Commercial Credit
Auto Glass installers enjoy a flexible source of
funds utilizing accounts receivable finance.
Accounts receivable financing is an easy way for auto
glass shops to access cash and applicants do not need to be credit
worthy for this type of financing. The receivable credit line grows
proportionately with the business sales cycle, so as the business
grows there is no need to worry about offering additional collateral
other than the receivables.
The auto glass industry currently experiences credit
term sales that remain outstanding on an average of 21 to 35 days
depending on the region and type of account debtors (customers that
are sold on credit terms). As business grows or fluctuates with
uneven sales patterns, the auto glass installers become
undercapitalized or financially unstable and are not able to make
payroll, pay suppliers or cover fixed expenses. The main reason this
happens is because all the cash flow that is normally used for daily
operations is tied up in accounts receivable.
Why do auto glass installers have a tough time
getting a traditional bank loan? Installers are considered to be
professional service providers that require industry related
certifications, utilize specialized pneumatic tools, cutting blades
and urethane adhesives. An auto glass installer cannot offer the
tangible assets most traditional lenders would like to lend on. The
most accessible and valuable collateral an auto glass shop can offer
is an intangible asset called accounts receivable. However, it is
one of the most unwanted collateral traditional lenders want to lend
against.
1st Commercial Credit helps auto glass shops by
offering receivable financial services and advances up to 90% based
on the invoice face value. Accounts receivable financing (also known
as factoring) is not a loan, so there is no need to make payments or
create debt. We simply utilize the receivables that are owed by
commercial accounts and advance funds against them, it is that easy.
The fee is based on the sales volume and collection cycle and
averages 2% to 4% of the invoice value.
Request a quote or call now for details at
1 800 450 9653
(24/7).
Accounts Receivable
Financing is a very simple process.
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Set up your account in 3 to 5 working days.
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No financials needed, No up front fees.
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Customized rates to suit your sales and collection cycle.
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Regulate your cash flow by drawing only what you need.
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Advances are made same day or within 24hrs.
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Quick credit checks for prospective customers.
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No minimum invoice fees, No credit facility fees.
What kind of auto glass shops can qualify for accounts receivable financing?
Any auto glass shop/installer can qualify for an accounts receivable credit line (Factoring) if:
- Sell credit worthy businesses.
- Have not pledged accounts receivable as collateral.
- Sell to commercial accounts or insurance companies.
Most of our clients are either:
- fast growing companies whose past earnings and sales histories will not justify the increased borrowing necessary to acquire needed raw materials and supplies.
- start-up operations with no financing base to rely upon or
companies with seasonal or uneven sales patterns.
- Principals with bad credit and cannot obtain traditional financing.
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Account Receivable Financing Frequent Questions |
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